Page 54 - Bankruptcy Code News Today

Established in 2015 as a trusted neutral forum to meet increasing demand for effective transnational dispute resolution, the Singapore International Commercial Court (the "SICC") is a...

New Delhi: The Competition Commission of India (CCI) has approved the 100% acquisition of Lanco Amarkantak Power Limited by Adani Power Limited.

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16...

Business News: New Delhi: IL&FS group has approached the NCLAT to seek permission to sell its stake with a "haircut" and without shareholders' approval in its compan.

The complexities of cancellation of debt income (CODI), including bankruptcy and insolvency implications, are important to understand. When debt is cancelled or...

The ruling is expected to set a precedent for promoters of bankrupt companies who are facing proceedings under the Insolvency and Bankruptcy Code (IBC), being joint personal guarantors or having common assets. The National Company Law Tribunal (NCLT) while approving the repayment plan, also observed that the creditors shall withdraw all the legal proceedings before various fora against the debtor within one month of the fulfilment of repayment obligations.

The National Company Law Tribunal (NCLT) declared the resolution plan by Wadhwa Buildcon LLPs promoters invalid, citing conduct issues by the Resolution Professional (RP) and the promoters being declared wilful defaulters. Bank of India, the companys financial creditor, raised concerns about irregularities in the approval process, leading to the plans rejection. NCLT found the voting dynamics skewed, favoring homebuyers over financial creditors due to RPs actions.

Wadhwa Buildcon: The matter, brought by the company’s financial creditor Bank of India, highlighted various irregularities in the approval process of the resolution plan, ultimately leading to its rejection.

The resolution professionals actions, including the delay in presenting the resolution plan and the addition of homebuyers to the committee, were seen as detrimental to the interests of the lender. Furthermore, it was discovered that promoter of the company, Ankit Wadhwa, was declared a wilful defaulter prior to the submission of their revised resolution plan. Despite this, the resolution professional failed to disclose this crucial information to the committee of creditors (CoC).

In this process, "lenders, as well as shareholders, would anyway have to take a haircut for their respective debt/ and equities," IL&FS said, adding that it would also ensure the revival of such entity, balancing the interests of stakeholders.